Having spent 10 years of my career in Subsea business previously, i'm currently seeing a replica of subsea business model in CCUS supply chain. Modular units, integrated EPC contracts, incumbent technology... sounds familiar? SLB’s recent announcement that it will acquire 80% of Aker Carbon Capture (ACC) is a step towards addressing a critical gap in the oilfield service group’s carbon capture, utilization, and storage (CCUS) capabilities. The deal will help SLB compete for integrated CCUS contracts – a rare capability among top oilfield service companies. As such, SLB could end up doing to the CCUS market what it did to the subsea sector through its OneSubsea joint venture with Aker Solutions and Subsea7, which competed for integrated contracts and ultimately led the market down this path. The latest deal, which extends beyond financial investment, aligns with SLB’s strategy of targeting $3 billion in revenue from its new energy business. Announced CCUS projects are moving into mature stage, contract for EPC is set to increase significantly in the coming years. This decision illustrates SLB's determination to catch up with peers such as Technip Energies and Baker Hughes who have already carved out a significant presence in the CCUS market through diverse technology offerings and strategic acquisitions. Will this set the future of Capture technology supplier landscape to be incumbent to EPC contract? Existing client can access to the full commentary from the link below: https://lnkd.in/dEKqtg3G #supplychain #carboncapture #CCUS #carbonmanagement #carbon #co2 #capturetechnology #CDR #EPC
Raymond S.
7mo
Don't forget #technipFMC 😊
Decarbonizing industry and reducing emissions requires innovation in financing and investing. David Heikkinen is a Registered Representative of Finalis Securities LLC Member FINRA / SIPC.
7moI disagree with your assessment (Modular units, integrated EPC contracts, incumbent technology) and would happily talk. I worked as a subsea engineer at Shell starting in 1994 and am now in the CCUS business starting in 2022. The supply chain, development pace, and development drivers are different.